Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Bed Bath & Beyond Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-08-27), 10-Q (reporting date: 2022-05-28), 10-K (reporting date: 2022-02-26), 10-Q (reporting date: 2021-11-27), 10-Q (reporting date: 2021-08-28), 10-Q (reporting date: 2021-05-29), 10-K (reporting date: 2021-02-27), 10-Q (reporting date: 2020-11-28), 10-Q (reporting date: 2020-08-29), 10-Q (reporting date: 2020-05-30), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-06-01), 10-K (reporting date: 2019-03-02), 10-Q (reporting date: 2018-12-01), 10-Q (reporting date: 2018-09-01), 10-Q (reporting date: 2018-06-02), 10-K (reporting date: 2018-03-03), 10-Q (reporting date: 2017-11-25), 10-Q (reporting date: 2017-08-26), 10-Q (reporting date: 2017-05-27).
- Gross Profit Margin
- The gross profit margin demonstrated a consistent downward trend over the analyzed periods. Starting at 37.26% in May 2017, this margin gradually declined to 29.23% by August 2022. Despite minor fluctuations and a brief uptick in late 2020 and early 2021, the overall pattern indicates diminishing efficiency in generating profit from revenue before operating expenses.
- Operating Profit Margin
- The operating profit margin revealed a concerning trajectory. Initially positive at 8.75% in May 2017, it decreased steadily, turning negative by March 2019. The negative margins deepened in subsequent quarters, reaching -13.72% by August 2022. Although a temporary positive margin of 0.53% was observed in May 2021, the prevailing trend underscores increasing operating losses over time.
- Net Profit Margin
- Net profit margin mirrored the decline seen in operating margins. From an initial 5.22% in May 2017, profits contracted progressively, entering negative territory from March 2019 onward. The margin worsened to -16.98% in August 2022, indicating sustained net losses. Occasional minor improvements were insufficient to reverse the downward trend.
- Return on Equity (ROE)
- ROE exhibited significant volatility and deterioration throughout the periods. Beginning at 23.86% in May 2017, the ratio declined sharply, turning negative by March 2019 and plunging to highly negative levels, such as -70.71% in November 2021 and further extreme negative values thereafter. The decline reflects eroding shareholder value and operational challenges impacting equity returns.
- Return on Assets (ROA)
- The ROA followed a bearish pattern consistent with other profitability metrics. From 9.28% in May 2017, it diminished steadily, becoming negative in March 2019 and worsening through the analyzed quarters. By August 2022, ROA reached -24.84%, signaling inefficient asset utilization and overall declining profitability at the asset level.
Return on Sales
Return on Investment
Gross Profit Margin
Bed Bath & Beyond Inc., gross profit margin calculation (quarterly data)
| Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | Jun 1, 2019 | Mar 2, 2019 | Dec 1, 2018 | Sep 1, 2018 | Jun 2, 2018 | Mar 3, 2018 | Nov 25, 2017 | Aug 26, 2017 | May 27, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Gross profit | 398,262) | 349,312) | 579,808) | 668,920) | 601,069) | 633,694) | 825,488) | 956,567) | 987,537) | 348,489) | 1,013,656) | 913,837) | 726,988) | 887,179) | 1,146,861) | 1,003,710) | 988,561) | 964,848) | 1,333,280) | 1,041,061) | 1,068,559) | 1,000,115) | |||||||
| Net sales | 1,437,018) | 1,463,418) | 2,051,396) | 1,877,874) | 1,984,696) | 1,953,812) | 2,619,141) | 2,618,472) | 2,687,968) | 1,307,447) | 3,106,822) | 2,759,322) | 2,719,447) | 2,572,989) | 3,307,881) | 3,032,231) | 2,935,018) | 2,753,667) | 3,716,264) | 2,954,539) | 2,936,357) | 2,742,141) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Gross profit margin1 | 29.23% | 29.81% | 31.57% | 32.35% | 32.88% | 34.45% | 33.77% | 34.01% | 33.09% | 30.35% | 31.74% | 32.35% | 32.36% | 33.98% | 34.12% | 34.50% | 35.02% | 35.66% | 35.98% | 36.60% | 37.02% | 37.26% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | 45.53% | 44.73% | 43.81% | 43.04% | 42.65% | 42.14% | 42.03% | 41.31% | 40.68% | 40.01% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 33.53% | 33.58% | 33.63% | 33.72% | 33.72% | 33.94% | 33.95% | 34.03% | 34.10% | 34.06% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 33.33% | 33.49% | 33.30% | 33.06% | 32.97% | 33.06% | 33.01% | 32.94% | 32.89% | 32.23% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 28.03% | 28.45% | 28.50% | 28.78% | 28.91% | 27.61% | 23.66% | 23.97% | 23.61% | 25.04% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-08-27), 10-Q (reporting date: 2022-05-28), 10-K (reporting date: 2022-02-26), 10-Q (reporting date: 2021-11-27), 10-Q (reporting date: 2021-08-28), 10-Q (reporting date: 2021-05-29), 10-K (reporting date: 2021-02-27), 10-Q (reporting date: 2020-11-28), 10-Q (reporting date: 2020-08-29), 10-Q (reporting date: 2020-05-30), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-06-01), 10-K (reporting date: 2019-03-02), 10-Q (reporting date: 2018-12-01), 10-Q (reporting date: 2018-09-01), 10-Q (reporting date: 2018-06-02), 10-K (reporting date: 2018-03-03), 10-Q (reporting date: 2017-11-25), 10-Q (reporting date: 2017-08-26), 10-Q (reporting date: 2017-05-27).
1 Q2 2023 Calculation
Gross profit margin = 100
× (Gross profitQ2 2023
+ Gross profitQ1 2023
+ Gross profitQ4 2022
+ Gross profitQ3 2022)
÷ (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
= 100 × (398,262 + 349,312 + 579,808 + 668,920)
÷ (1,437,018 + 1,463,418 + 2,051,396 + 1,877,874)
= 29.23%
2 Click competitor name to see calculations.
- Gross Profit Trends
- The gross profit exhibits noticeable fluctuations over the observed periods. Initially, there was a general increase reaching a peak around March 2018. Thereafter, gross profit showed a declining trend with some intermittent recoveries, particularly noticeable in the August 2020 quarter. However, from early 2021 through mid-2022, gross profit values generally trended downward, reflecting a significant reduction compared to earlier peak levels.
- Net Sales Trends
- Net sales followed a somewhat similar fluctuating pattern as gross profit. Sales increased notably until early 2018, reaching a high point, then experienced recurring declines and partial recoveries. From mid-2020, there was a sharp drop observed in net sales, followed by a moderate rebound, but the levels in 2022 remained substantially below the earlier highs.
- Gross Profit Margin Analysis
- The gross profit margin gradually declined through the periods, moving from a high of around 37% in 2017 to below 30% by the middle of 2022. This trend indicates a persistent decrease in profitability relative to sales. Notably, the margin erosion is consistent, with only minor fluctuations, suggesting increased cost pressures or pricing challenges over time.
- Overall Financial Performance Insights
- The data reflects a trend of weakening profitability for the company, as indicated by the declining gross profit margins alongside volatile and generally weakening gross profit and net sales figures. The downward trajectory in both absolute figures and margin percentages suggests challenges in maintaining revenue growth and cost efficiencies. The substantial drop in both sales and gross profit around 2020 likely corresponds to external factors impacting performance, with only partial recovery observed in subsequent periods.
Operating Profit Margin
Bed Bath & Beyond Inc., operating profit margin calculation (quarterly data)
| Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | Jun 1, 2019 | Mar 2, 2019 | Dec 1, 2018 | Sep 1, 2018 | Jun 2, 2018 | Mar 3, 2018 | Nov 25, 2017 | Aug 26, 2017 | May 27, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Operating profit (loss) | (346,202) | (339,158) | (165,481) | (86,111) | (84,114) | (71,872) | (23,652) | (122,849) | 270,543) | (460,929) | (81,206) | (29,758) | (182,258) | (406,842) | (296,735) | 49,513) | 78,858) | 81,229) | 337,103) | 108,360) | 168,847) | 147,011) | |||||||
| Net sales | 1,437,018) | 1,463,418) | 2,051,396) | 1,877,874) | 1,984,696) | 1,953,812) | 2,619,141) | 2,618,472) | 2,687,968) | 1,307,447) | 3,106,822) | 2,759,322) | 2,719,447) | 2,572,989) | 3,307,881) | 3,032,231) | 2,935,018) | 2,753,667) | 3,716,264) | 2,954,539) | 2,936,357) | 2,742,141) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Operating profit margin1 | -13.72% | -9.15% | -5.18% | -3.15% | -3.30% | 0.53% | -3.65% | -4.06% | -3.06% | -7.62% | -6.27% | -8.06% | -7.19% | -4.85% | -0.72% | 4.40% | 4.90% | 5.63% | 6.16% | 7.02% | 7.87% | 8.75% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | 3.29% | 2.54% | 2.38% | 2.58% | 3.15% | 4.12% | 5.30% | 6.18% | 6.68% | 6.63% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 15.30% | 15.20% | 15.24% | 15.10% | 14.79% | 14.70% | 13.84% | 14.01% | 13.99% | 13.85% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 12.76% | 12.72% | 12.56% | 12.36% | 11.79% | 11.55% | 10.77% | 10.64% | 10.53% | 9.30% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 9.77% | 10.18% | 9.79% | 9.55% | 9.32% | 7.05% | 1.81% | 3.13% | 3.26% | 5.86% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-08-27), 10-Q (reporting date: 2022-05-28), 10-K (reporting date: 2022-02-26), 10-Q (reporting date: 2021-11-27), 10-Q (reporting date: 2021-08-28), 10-Q (reporting date: 2021-05-29), 10-K (reporting date: 2021-02-27), 10-Q (reporting date: 2020-11-28), 10-Q (reporting date: 2020-08-29), 10-Q (reporting date: 2020-05-30), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-06-01), 10-K (reporting date: 2019-03-02), 10-Q (reporting date: 2018-12-01), 10-Q (reporting date: 2018-09-01), 10-Q (reporting date: 2018-06-02), 10-K (reporting date: 2018-03-03), 10-Q (reporting date: 2017-11-25), 10-Q (reporting date: 2017-08-26), 10-Q (reporting date: 2017-05-27).
1 Q2 2023 Calculation
Operating profit margin = 100
× (Operating profit (loss)Q2 2023
+ Operating profit (loss)Q1 2023
+ Operating profit (loss)Q4 2022
+ Operating profit (loss)Q3 2022)
÷ (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
= 100 × (-346,202 + -339,158 + -165,481 + -86,111)
÷ (1,437,018 + 1,463,418 + 2,051,396 + 1,877,874)
= -13.72%
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations in operating profit, net sales, and operating profit margin over the observed periods. Several distinct trends and patterns emerge from the analysis.
- Operating Profit (Loss)
- Operating profit exhibited an overall volatile trajectory. Initially, the company posted positive operating profits between May 2017 and March 2018, peaking at 337,103 thousand US dollars in March 2018. However, from March 2019 onwards, a consistent and substantial decline occurred, with operating profits turning into losses. The losses deepened significantly in later periods, with the most severe negative results recorded in August 2022 and May 2022, exceeding -300,000 thousand US dollars. A temporary recovery was observed in August 2020, with a swing back to positive operating profit of 270,543 thousand US dollars, but this was not sustained in subsequent quarters.
- Net Sales
- Net sales showed a mixed but generally declining trend over time. The highest sales were recorded in early 2018, reaching over 3.7 billion US dollars in March 2018. Thereafter, sales declined sharply in mid-2019, followed by some fluctuations. The company experienced a drastic drop in net sales in May 2020, likely impacted by exceptional circumstances, with sales falling to approximately 1.3 billion US dollars. Although some recovery occurred later in 2020 and early 2021, the general direction resumed downward. By the latter part of the timeline, sales consistently hovered below 2 billion US dollars and reached lows around 1.4 billion US dollars in mid and late 2022.
- Operating Profit Margin
- The operating profit margin mirrors the operating profit pattern, starting relatively strong with margins between 4.4% and 8.75% through early 2018. Margins began to decline steadily afterward, turning negative in March 2019 (-0.72%) and deteriorating further to reach double-digit negative margins by mid to late 2022, with the worst margin recorded as -13.72% in August 2022. This decline implies increasing operational inefficiencies or cost pressures relative to sales. The margin briefly improved to a positive 0.53% in May 2021 but reverted to negative thereafter.
Overall, the data indicates an initial period of stable profitability followed by a prolonged downturn in operating performance. The company's revenues have decreased considerably, accompanied by escalating operational losses and declining margins. The intermittent positive profits suggest occasional operational improvements, but these were not sufficient to reverse the broader negative trend observed throughout the later periods. This pattern signals challenges in maintaining profitability amid declining sales and rising costs or other operational difficulties.
Net Profit Margin
Bed Bath & Beyond Inc., net profit margin calculation (quarterly data)
| Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | Jun 1, 2019 | Mar 2, 2019 | Dec 1, 2018 | Sep 1, 2018 | Jun 2, 2018 | Mar 3, 2018 | Nov 25, 2017 | Aug 26, 2017 | May 27, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net earnings (loss) | (366,159) | (357,666) | (159,105) | (276,429) | (73,215) | (50,874) | 9,059) | (75,441) | 217,900) | (302,291) | (65,414) | (38,552) | (138,765) | (371,085) | (253,793) | 24,354) | 48,639) | 43,576) | 194,044) | 61,301) | 94,230) | 75,283) | |||||||
| Net sales | 1,437,018) | 1,463,418) | 2,051,396) | 1,877,874) | 1,984,696) | 1,953,812) | 2,619,141) | 2,618,472) | 2,687,968) | 1,307,447) | 3,106,822) | 2,759,322) | 2,719,447) | 2,572,989) | 3,307,881) | 3,032,231) | 2,935,018) | 2,753,667) | 3,716,264) | 2,954,539) | 2,936,357) | 2,742,141) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Net profit margin1 | -16.98% | -11.74% | -7.11% | -4.64% | -2.08% | 1.02% | -1.63% | -2.32% | -1.91% | -5.51% | -5.50% | -7.06% | -6.36% | -4.66% | -1.14% | 2.50% | 2.81% | 3.18% | 3.44% | 4.11% | 4.64% | 5.22% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | 2.43% | 0.82% | -0.53% | 2.25% | 2.39% | 4.48% | 7.10% | 5.73% | 6.64% | 6.42% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 10.88% | 10.83% | 10.87% | 10.79% | 10.55% | 10.45% | 9.74% | 9.94% | 9.91% | 9.79% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 8.84% | 8.85% | 8.77% | 8.63% | 7.41% | 7.23% | 6.51% | 6.29% | 7.12% | 6.17% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 6.77% | 6.69% | 6.76% | 5.85% | 5.81% | 4.00% | 0.28% | 2.24% | 2.11% | 4.57% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-08-27), 10-Q (reporting date: 2022-05-28), 10-K (reporting date: 2022-02-26), 10-Q (reporting date: 2021-11-27), 10-Q (reporting date: 2021-08-28), 10-Q (reporting date: 2021-05-29), 10-K (reporting date: 2021-02-27), 10-Q (reporting date: 2020-11-28), 10-Q (reporting date: 2020-08-29), 10-Q (reporting date: 2020-05-30), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-06-01), 10-K (reporting date: 2019-03-02), 10-Q (reporting date: 2018-12-01), 10-Q (reporting date: 2018-09-01), 10-Q (reporting date: 2018-06-02), 10-K (reporting date: 2018-03-03), 10-Q (reporting date: 2017-11-25), 10-Q (reporting date: 2017-08-26), 10-Q (reporting date: 2017-05-27).
1 Q2 2023 Calculation
Net profit margin = 100
× (Net earnings (loss)Q2 2023
+ Net earnings (loss)Q1 2023
+ Net earnings (loss)Q4 2022
+ Net earnings (loss)Q3 2022)
÷ (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
= 100 × (-366,159 + -357,666 + -159,105 + -276,429)
÷ (1,437,018 + 1,463,418 + 2,051,396 + 1,877,874)
= -16.98%
2 Click competitor name to see calculations.
- Net Earnings (Loss)
- The net earnings exhibited considerable volatility throughout the analyzed periods. Positive earnings were observed initially, peaking at 194,044 thousand US dollars in early March 2018. However, from late 2018 onwards, negative net earnings became predominant, with the losses deepening significantly near the end of the period. The largest losses occurred around November 2021 and August 2022, reaching values above 350,000 thousand US dollars in the negative. Occasional quarters showed slight recoveries or smaller losses, but the overall trend indicates a deterioration in profitability over time.
- Net Sales
- Net sales showed fluctuations without a clear continuous growth or decline pattern. Initial quarters demonstrated relatively stable sales figures around 2.7 to 3.7 million US dollars, peaking in early 2018. Afterward, there was a general downward movement in sales, with some intermittent increases. Noticeably, a sharp decline in sales occurred in mid-2020, likely influenced by extraordinary circumstances. Although there were minor recoveries in some subsequent quarters, the trend toward lower sales volumes and values was evident, especially from mid-2021 onwards.
- Net Profit Margin
- The net profit margin reflected the underlying earnings trends, starting positively with margins above 3% early in the period but experiencing a gradual decline. By late 2018, margins turned negative for the first time and continued to deteriorate through the subsequent quarters, reaching a significant negative margin of almost -17% by August 2022. Temporary improvements in a few quarters were insufficient to reverse the overall downward trajectory. This decline in profit margin signals increasing operational inefficiencies or challenges in controlling costs relative to sales.
- Summary of Trends
- The financial performance over the multiple quarters indicates a company struggling with profitability and sales stability. While net sales initially showed resilience, the latter part of the timeframe was marked by declining revenue and deepening losses. The transition from positive to consistently negative net earnings and margin underscores difficulties in sustaining profitable operations. The data suggests ongoing pressures that significantly impacted the company’s financial health, calling for strategic interventions to address the downward trends.
Return on Equity (ROE)
Bed Bath & Beyond Inc., ROE calculation (quarterly data)
| Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | Jun 1, 2019 | Mar 2, 2019 | Dec 1, 2018 | Sep 1, 2018 | Jun 2, 2018 | Mar 3, 2018 | Nov 25, 2017 | Aug 26, 2017 | May 27, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net earnings (loss) | (366,159) | (357,666) | (159,105) | (276,429) | (73,215) | (50,874) | 9,059) | (75,441) | 217,900) | (302,291) | (65,414) | (38,552) | (138,765) | (371,085) | (253,793) | 24,354) | 48,639) | 43,576) | 194,044) | 61,301) | 94,230) | 75,283) | |||||||
| Shareholders’ equity (deficit) | (577,654) | (220,298) | 174,145) | 553,613) | 934,234) | 1,106,794) | 1,276,936) | 1,399,959) | 1,697,008) | 1,461,090) | 1,764,935) | 1,848,205) | 1,903,703) | 2,061,994) | 2,560,331) | 2,903,275) | 2,902,408) | 2,904,179) | 2,888,628) | 2,748,846) | 2,721,698) | 2,672,592) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROE1 | — | — | -321.35% | -70.71% | -20.39% | 9.09% | -11.81% | -16.09% | -11.10% | -37.30% | -34.78% | -43.40% | -38.83% | -26.76% | -5.36% | 10.70% | 11.97% | 13.54% | 14.71% | 18.17% | 20.75% | 23.86% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | 7.75% | 2.78% | -1.86% | 8.24% | 8.83% | 15.98% | 24.13% | 21.78% | 25.64% | 26.04% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 7,124.47% | — | — | 1,539.90% | 736.64% | 844.74% | 390.00% | 813.68% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | — | — | — | — | — | 1,532.36% | 406.05% | 131.77% | 131.40% | 266.43% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 62.26% | 59.63% | 54.69% | 41.40% | 39.21% | 24.63% | 1.55% | 13.47% | 15.26% | 35.54% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-08-27), 10-Q (reporting date: 2022-05-28), 10-K (reporting date: 2022-02-26), 10-Q (reporting date: 2021-11-27), 10-Q (reporting date: 2021-08-28), 10-Q (reporting date: 2021-05-29), 10-K (reporting date: 2021-02-27), 10-Q (reporting date: 2020-11-28), 10-Q (reporting date: 2020-08-29), 10-Q (reporting date: 2020-05-30), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-06-01), 10-K (reporting date: 2019-03-02), 10-Q (reporting date: 2018-12-01), 10-Q (reporting date: 2018-09-01), 10-Q (reporting date: 2018-06-02), 10-K (reporting date: 2018-03-03), 10-Q (reporting date: 2017-11-25), 10-Q (reporting date: 2017-08-26), 10-Q (reporting date: 2017-05-27).
1 Q2 2023 Calculation
ROE = 100
× (Net earnings (loss)Q2 2023
+ Net earnings (loss)Q1 2023
+ Net earnings (loss)Q4 2022
+ Net earnings (loss)Q3 2022)
÷ Shareholders’ equity (deficit)
= 100 × (-366,159 + -357,666 + -159,105 + -276,429)
÷ -577,654 = —
2 Click competitor name to see calculations.
The financial analysis over the presented periods reveals significant fluctuations in net earnings (loss), shareholders’ equity, and return on equity (ROE) for the company. The data indicates a dynamic and challenging financial environment characterized by both strong positive results and substantial losses.
- Net Earnings (Loss)
- Initially, the net earnings showed a positive trend with notable peaks, particularly in early 2018, where the company recorded its highest profit of US$194,044 thousand. However, after this peak, the net earnings demonstrated a volatility pattern, with recurring losses becoming dominant from the period ending March 2, 2019. The most severe losses occurred in the periods around 2020 and 2022, highlighting significant financial stress that overshadowed prior gains. Despite momentary recoveries, positive earnings became increasingly scarce towards the most recent quarters.
- Shareholders’ Equity (Deficit)
- The shareholders' equity trended upward through early 2018, reaching a peak in the quarter ending December 1, 2018. Following that, equity levels declined progressively, with a shift into deficit territory observed in the last two reporting periods. This decline reflects accumulated losses and possibly other equity-reducing events that undermined the company’s net asset base. The transition from a positive equity position to a deficit suggests increasing financial vulnerability and erosion of shareholder value.
- Return on Equity (ROE)
- The ROE started at relatively robust levels, indicating effective utilization of equity to generate earnings in the initial periods, peaking near 24%. However, there was a marked decline beginning with the quarter ending March 2, 2019, coinciding with the large net losses observed. ROE became negative and fluctuated significantly, indicating reduced profitability relative to equity and considerable instability in returns generated for shareholders. The extreme negative values in 2022 reflect dramatic losses relative to the reduced or negative equity base, signaling critical financial distress.
Overall, the company’s financial trajectory signals a transition from profitability and equity growth to recurrent losses and equity depletion. The volatility in net earnings and the rapid deterioration of shareholders’ equity, along with highly negative ROE values in later periods, point to significant operational or market challenges. These trends warrant close scrutiny and possibly corrective strategic actions to restore financial health and sustainability.
Return on Assets (ROA)
Bed Bath & Beyond Inc., ROA calculation (quarterly data)
| Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | Jun 1, 2019 | Mar 2, 2019 | Dec 1, 2018 | Sep 1, 2018 | Jun 2, 2018 | Mar 3, 2018 | Nov 25, 2017 | Aug 26, 2017 | May 27, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net earnings (loss) | (366,159) | (357,666) | (159,105) | (276,429) | (73,215) | (50,874) | 9,059) | (75,441) | 217,900) | (302,291) | (65,414) | (38,552) | (138,765) | (371,085) | (253,793) | 24,354) | 48,639) | 43,576) | 194,044) | 61,301) | 94,230) | 75,283) | |||||||
| Total assets | 4,666,639) | 4,949,102) | 5,130,572) | 5,656,638) | 6,067,523) | 6,053,289) | 6,456,930) | 6,991,610) | 7,439,100) | 7,694,347) | 7,790,515) | 8,011,988) | 7,916,378) | 7,988,195) | 6,570,541) | 7,536,744) | 7,319,863) | 7,013,746) | 7,040,806) | 7,188,878) | 6,782,659) | 6,875,801) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROA1 | -24.84% | -17.51% | -10.91% | -6.92% | -3.14% | 1.66% | -2.34% | -3.22% | -2.53% | -7.08% | -7.88% | -10.01% | -9.34% | -6.91% | -2.09% | 4.12% | 4.75% | 5.61% | 6.03% | 6.95% | 8.33% | 9.28% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | 2.74% | 0.92% | -0.59% | 2.64% | 2.77% | 5.21% | 7.93% | 6.87% | 8.17% | 8.33% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 22.27% | 21.57% | 22.86% | 21.82% | 21.54% | 20.35% | 18.23% | 18.66% | 18.67% | 18.68% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 18.04% | 17.00% | 18.91% | 16.63% | 14.19% | 13.32% | 12.49% | 10.55% | 11.06% | 9.98% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 12.40% | 12.04% | 11.53% | 8.87% | 8.73% | 4.99% | 0.29% | 2.38% | 2.68% | 6.63% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-08-27), 10-Q (reporting date: 2022-05-28), 10-K (reporting date: 2022-02-26), 10-Q (reporting date: 2021-11-27), 10-Q (reporting date: 2021-08-28), 10-Q (reporting date: 2021-05-29), 10-K (reporting date: 2021-02-27), 10-Q (reporting date: 2020-11-28), 10-Q (reporting date: 2020-08-29), 10-Q (reporting date: 2020-05-30), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-06-01), 10-K (reporting date: 2019-03-02), 10-Q (reporting date: 2018-12-01), 10-Q (reporting date: 2018-09-01), 10-Q (reporting date: 2018-06-02), 10-K (reporting date: 2018-03-03), 10-Q (reporting date: 2017-11-25), 10-Q (reporting date: 2017-08-26), 10-Q (reporting date: 2017-05-27).
1 Q2 2023 Calculation
ROA = 100
× (Net earnings (loss)Q2 2023
+ Net earnings (loss)Q1 2023
+ Net earnings (loss)Q4 2022
+ Net earnings (loss)Q3 2022)
÷ Total assets
= 100 × (-366,159 + -357,666 + -159,105 + -276,429)
÷ 4,666,639 = -24.84%
2 Click competitor name to see calculations.
The financial performance over the observed periods demonstrates significant fluctuations, with notable variations in net earnings (loss), total assets, and return on assets (ROA).
- Net Earnings (Loss)
- Initially, net earnings showed positive values, peaking at 194,044 thousand US dollars in early 2018, followed by declines but generally remaining positive until early 2019. From March 2019 onward, net earnings exhibited consistent and substantial losses, reaching depths beyond 300,000 thousand US dollars in some quarters, with occasional short-term improvements but no sustained recovery. The volatility suggests episodic gains interspersed with sharp declines, indicating operational or market challenges impacting profitability.
- Total Assets
- Total assets experienced moderate fluctuations but demonstrated a gradual declining trend over the entire period. Starting around 6,875,801 thousand US dollars, assets marginally increased up to late 2018, peaking near 8,018,988 thousand US dollars in late 2019. However, from 2020 onwards, there was a steady decrease in total assets, falling to approximately 4,666,639 thousand US dollars by mid-2022. This decline indicates a potential reduction in asset base, possibly due to asset sales, impairment, or declining investment.
- Return on Assets (ROA)
- ROA began strongly positive in the earlier quarters, with values around 9.28%, but showed a steady diminishing trend over time. The ratio turned negative starting in March 2019, coinciding with the period of negative net earnings, and worsened steadily, reaching -24.84% by the latest quarter. This deterioration reflects decreasing profitability relative to the company’s asset base, signaling inefficiencies or increased losses in asset utilization.
In summary, the data reveal a weakening financial situation characterized by declining profitability and asset base erosion over the periods observed. The sharp downturn in net earnings and sustained negative ROA in recent years highlight challenges impacting operational effectiveness and overall financial health.